6.	Income taxes:

Income tax expense (recovery) differs from the amount that would be obtained by applying statutory federal, and provincial income tax rates to the respective year’s income (loss) from continuing operations before income taxes as follows:


	2013			2012			2011
Effective statutory federal, state and provincial income tax rate		26.50	%		26.50	%		28.25	%

Effective tax expense (recovery) on income (loss) from continuing operations before income taxes	$	(1,235	)	$	271		$	(42	)
Increase (decrease) results from:
Non-deductible share-based compensation expense		69			114			141
Income taxed at different rates in foreign jurisdictions		33			38			(1,395	)
Tax benefit on capital loss		(461	)		—			—
Income from discontinued operations		84			762			2,345
Other		(123	)		55			119

Income tax expense (recovery) from continuing operations	$	(1,633	)	$	1,240		$	1,168


Income tax expense (recovery):
	2013			2012			2011
Current income tax expense (recovery):
Canada:
Federal	$	(404	)	$	699		$	454
Provincial		(304	)		530			319
Other		(2	)		1			107

	$	(710	)	$	1,230		$	880
Deferred income tax expense (recovery):
Canada:
Federal		(526	)		6			169
Provincial		(397	)		4			119

	$	(923	)	$	10		$	288

	$	(1,633	)	$	1,240		$	1,168

A summary of the principal components of deferred income tax assets and liabilities is as follows:


	2013			2012
Current deferred income tax assets:
Financing costs	$	105		$	92

Non-current deferred income tax assets:
Loss carry-forwards	$	21,130		$	—
Other timing differences		390			386
Valuation allowance		(20,480	)		—

		1,040			386
Non-current deferred income tax liabilities:
Property and equipment		(1,305	)		(1,481	)
Financing costs		(5	)		(80	)

		(1,310	)		(1,561	)

	$	(270	)	$	(1,175	)

In accordance with Financial Accounting Standard Board (“FASB”) Accounting Standard Codification (“FASB ASC”) 740-10, the Company had recorded a valuation allowance for all U.S. deferred tax assets. The sale of SCO resulted in a taxable gain in the United States, which the Company was able to offset with the utilization of its available net operating loss carry forwards from previous years of $17.6 million. Subsequent to the sale of SCO the Company sold its U.S. LTL business and therefore, recorded the impact on its U.S. deferred tax assets and valuation allowance in discontinued operations.

In Canada, the Company incurred a capital loss of approximately CAD $85.6 million from the sale of U.S. LTL. A valuation allowance of $21.7 million was recorded as it is uncertain whether the capital losses will be utilized to offset future capital gains. The Company utilized CAD $3.7 million of the aforementioned capital losses as it is allowed to carry back current tax losses three years to offset previous year capital gains. The Company recognized a tax benefit of $0.5 million in income tax expense from continuing operations as a result of the allowable carry-back. As at December 31, 2013, the valuation allowance recorded was $20.5 million. The capital losses would expire upon the completion of the Arrangement with TransForce (Note 1).

In Canada, the Company has CAD $2.6 million of net operating loss carry-forwards available to reduce future years’ taxable income. The net operating losses were recognized as a deferred income tax asset and expire between 2032 and 2033 if not utilized. Management believes the Company will generate sufficient taxable income to use these losses in the future.